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Despite many traders looking for either a sharp correction or a major breakout higher, the market remains stuck in a neutral 1340-1350 range in the S&P 500 on a closing basis. In essence, the lack of a short-term trend amounts to a bittersweet spinach party. Be that as it may, underneath the surface my portfolio of longs continues to work very well inside 12631. My top position today is AREX, which is fitting given how strong the small cap energy names have been lately. Beyond that, I see plenty of green on my watchlist.
The main issue that I see few talking about is the notion that the S&P is essentiality trading where it was nearly two weeks ago. So, the argument that we are correcting through time rather than price is a legitimate one. We could come in a bit more, but the fact that the market is fighting hard to prevent a violent rollover is constrictive for bulls. Moreover, the divergence between Apple’s weakness and the rest of the market in the green today is another disappointment for bears.
As the session progresses today, I am scanning to see if these morning moves to the upside stick. Even with the market in a neutral range, if individual stocks are being permitted to move higher then I am inclined to play along and add even more long exposure.
